“The Fiscal Trap”
“Fed chairman Ben Bernanke concedes that, while necessary, a new large purchase of government bonds by the Fed to help cover the deficit will not completely solve our problem of slow growth. Many in the markets and around the world express the same sentiment in a more negative way—saying this latest round of “quantitative easing” won’t work. Only time will tell, and our best guess is that, because it is only modestly effective by itself, quantitative easing will probably be part of Fed policy for quite some time. One reason we must hope that quantitative easing is not too successful is that its near term success would mean a catastrophe for government finances.” Read more.
“The Fiscal Trap”
Lawrence B. Lindsey
The Weekly Standard, Vol. 16, No. 12, December 6, 2010.
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